The uninhabited islands were discovered and colonized by the Portuguese in the 15th century; they subsequently became a trading center for African slaves and later an important coaling and resupply stop for whaling and transatlantic shipping. Following independence in 1975, and a tentative interest in unification with Guinea-Bissau, a one-party system was established and maintained until multi-party elections were held in 1990. Cape Verde continues to exhibit one of Africa's most stable democratic governments. Repeated droughts during the second half of the 20th century caused significant hardship and prompted heavy emigration. As a result, Cape Verde's expatriate population is greater than its domestic one. Most Cape Verdeans have both African and Portuguese antecedents.

Geography

Cape Verde

Location:

Western Africa, group of islands in the North Atlantic Ocean, west of Senegal

soil erosion; demand for wood used as fuel has resulted in deforestation; desertification; environmental damage has threatened several species of birds and reptiles; illegal beach sand extraction; overfishing

new constitution came into force 25 September 1992; underwent a major revision on 23 November 1995, substantially increasing the powers of the president, and a further revision in 1999, to create the position of national ombudsman (Provedor de Justica)

Legal system:

derived from the legal system of Portugal

Suffrage:

18 years of age; universal

Executive branch:

chief of state: President Pedro PIRES (since 22 March 2001)
head of government: Prime Minister Jose Maria Pereira NEVES (since 1 February 2001)
cabinet: Council of Ministers appointed by the president on the recommendation of the prime minister
elections: president elected by popular vote for a five-year term; election last held 11 and 25 February 2001 (next to be held NA February 2006); prime minister nominated by the National Assembly and appointed by the president
election results: Pedro PIRES elected president; percent of vote - Pedro PIRES (PAICV) 49.43%, Carlos VIEGA (MPD) 49.42%; note - the election was won by only twelve votes

Legislative branch:

unicameral National Assembly or Assembleia Nacional (72 seats; members are elected by popular vote to serve five-year terms)
elections: last held 14 January 2001 (next to be held NA December 2005)
election results: percent of vote by party - PAICV 47.3%, MPD 39.8%, ADM 6%, other 6.9%; seats by party - PAICV 40, MPD 30, ADM 2

Judicial branch:

Supreme Tribunal of Justice or Supremo Tribunal de Justia

Political parties and leaders:

African Party for Independence of Cape Verde or PAICV [Jose Maria Pereira NEVES, chairman]; Democratic Alliance for Change or ADM [Dr. Eurico MONTEIRO] (a coalition of PCD, PTS, and UCID); Democratic Christian Party or PDC [Manuel RODRIGUES, chairman]; Democratic Renovation Party or PRD [Jacinto SANTOS, president]; Movement for Democracy or MPD [Agostinho LOPES, president]; Party for Democratic Convergence or PCD [Dr. Eurico MONTEIRO, president]; Party of Work and Solidarity or PTS [Anibal MEDINA, president]; Social Democratic Party or PSD [Joao ALEM, president]

three horizontal bands of light blue (top, double width), white (with a horizontal red stripe in the middle third), and light blue; a circle of 10 yellow five-pointed stars is centered on the hoist end of the red stripe and extends into the upper and lower blue bands

Economy

Cape Verde

Economy - overview:

This island economy suffers from a poor natural resource base, including serious water shortages exacerbated by cycles of long-term drought. The economy is service-oriented, with commerce, transport, tourism, and public services accounting for 72% of GDP. Although nearly 70% of the population lives in rural areas, the share of agriculture in GDP in 2001 was only 11%, of which fishing accounts for 1.5%. About 82% of food must be imported. The fishing potential, mostly lobster and tuna, is not fully exploited. Cape Verde annually runs a high trade deficit, financed by foreign aid and remittances from emigrants; remittances supplement GDP by more than 20%. Economic reforms are aimed at developing the private sector and attracting foreign investment to diversify the economy. Prospects for 2003 depend heavily on the maintenance of aid flows, tourism, remittances, and the momentum of the government's development program.

general assessment: effective system, being improved
domestic: interisland microwave radio relay system with both analog and digital exchanges; work is in progress on a submarine fiber-optic cable system which is scheduled for completion in 2003
international: 2 coaxial submarine cables; HF radiotelephone to Senegal and Guinea-Bissau; satellite earth station - 1 Intelsat (Atlantic Ocean)

used as a transshipment point for illicit drugs moving from Latin America and Asia destined for Western Europe; the lack of a well-developed financial system limits the country's utility as a money-laundering center